MarketsInsider/Jennifer Sor/10-28-2022
“The Fed won’t pivot from its path of interest rate hikes until the end of next year as inflation is persistent and the economy isn’t slowing as expected, according to JPMorgan strategist Julia Wang. That’s contrary to the outlook of many experts in the market, who have warned this year that the Fed may be forced to pivot in order to avoid causing a recession.”
USAGOLD note: Mohamed El-Erian is quoted as saying the US still faces an “inflation issue.” Stopping rate hikes, he says, would lead to stagflation. We will add that continuing with rate hikes as inflation remains untamed could also lead to stagflation. Cause aside, we remind that gold and silver did very well during our last close encounter with stagflation in the 1970s.
